E-invoice: Six-month Grace Period Brings Relief, Ensures Companies Are Ready

CYBERJAYA, July 26 (Bernama) -- The six-month grace period for the electronic invoicing (e-Invoicing) implementation brings a sigh of relief to taxpayers, ensuring that companies are fully prepared in all aspects.

KPMG Tax Services Sdn Bhd head of tax Soh Lian Seng said the grace period announced by the Inland Revenue Board (IRB) is a good initiative and proves that the government listens to inputs from the field. 

“(The grace period) gives them (the taxpayers) time to fully implement the e-Invoicing (system), and this is a good initiative. 

“My view is that the government considers and listens to inputs about the implementation (e-Invoicing). The grace period provides some comfort level to the taxpayers,” he told the media here today. 

Meanwhile, Velesto Energy Bhd chief financial officer Sazlyna Sapiee said the implementation of e-Invoicing would provide transparency, while the grace period announced would allow companies to be more prepared. 

“There are other companies that need (additional) time. So, the announcement is an indication that IRB listens to the challenges faced by companies,” she said. 

Earlier, IRB chief executive officer Datuk Abu Tariq Jamaluddin said the government has agreed to give a six-month grace period to taxpayers from the date of mandatory implementation of e-Invoicing, which is Aug 1. 

During the six months, there would be no prosecution action under Section 120 of the Income Tax Act 1967 against non-compliance with the e-Invoicing rules provided that the taxpayer has complied with the consolidated e-Invoicing requirements. 

The IRB had informed that the first phase of e-Invoicing will start on Aug 1 involving companies with annual income or sales exceeding RM100 million.

The second phase will involve companies with annual income or sales exceeding RM25 million to RM100 million, according to the IRB.

-- BERNAMA